The takeover would have strengthened the existing
nationwide oligopoly held by Kabel Deutschland, Germany’s
biggest cable company, and Unitymedia KabelBW GmbH, the Federal
Cartel Office in Bonn said in an e-mailed statement today. Even
with the concessions Unterfoehring-based Kabel Deutschland had
offered, competition would have been gravely impaired, the
office said.

“Tele Columbus is Kabel Deutschland’s most important
competitor” in East Germany, Cartel Office President Andreas
Mundt said in the statement. “In many areas there would be no
alternative supplier left.”

The company said in May it would buy Berlin-based Tele
Columbus for 603 million euros ($795 million) plus accrued
interest to reach more pay-television households. Creditors took
ownership of Tele Columbus after a debt restructuring.

Kabel Deutschland is itself the target of a potential bid
by Vodafone Group Plc.